Economics and Competitiveness · 2005 Sugar Beets on Irrigated Soil Zones 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 50.00 Average Top 1/3 Total Cost ($/Tonne) Other

Economics and Competitiveness

Cost and Return Profiles for Selected Crops, 2005

Irrigated Crops

Economics & C titi

July, 2007

TABLE OF CONTENTS

2005 Irrigated Soil Zones

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OVERVIEW ....................................................................................................................1

GRAPHS

Sugar Beets ..........................................................................................................2

CROPS

Spring Wheat .......................................................................................................3 Soft White Wheat.................................................................................................5 Durum Wheat.......................................................................................................7 Feed Barley ..........................................................................................................8 Dry Beans.............................................................................................................12 Sugar Beets ..........................................................................................................15

FORAGES

Alfalfa Hay...........................................................................................................18 Mixed Hay ...........................................................................................................19 Greenfeed.............................................................................................................21 Haylage ................................................................................................................23

FREQUENCY DISTRIBUTIONS ..................................................................................25 Feed Barley ..........................................................................................................27 Dry Beans.............................................................................................................28 Sugar Beets ..........................................................................................................29

DEFINITIONS AND ALLOCATIONS..........................................................................30

OVERVIEW

2005 Irrigated Soil Zones The AgriProfit$ Cost and Return study is a provincial overview of costs and returns for various annual field crops and forages grown throughout the province. Participating farmers are surveyed throughout the winter and the Alberta Agriculture and Food (AF) Economics Unit compiles all the information into this summary package. This detailed and world-class database is used for extension and research purposes. In this package you will find a brief summary of various field crops and forages grown in the irrigated soil zones. Where numbers warrant, there are two levels of analysis – the group average and the top third. The top third analysis is based on the top third of fields that have the highest return to equity. The map on the upper right illustrates the Irrigated Soil Zone areas in Alberta. Please note that farms highlighted within this zone may contain characteristics of neighbouring soil zones, however, this is the grouping method used for this study. The map on the lower right highlights the locations of participating farmers for the 2005 program season. For questions regarding this document please contact: Karla Bergstrom – Grains & Oilseed Economist Economics Unit – AF Phone: (780) 422-3122 Fax: (780) 427-5220 Email: [email protected]

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Alberta Ag-Info Centre 310-FARM Acknowledgements: Renn Breitkreuz, Dale Kaliel, Pauline Van Biert, Shukun Guan, Guangzhi Liu, Nabi Chaudhary, Richard Stadlwieser, Interviewers and Participants

BlackBrownDark BrownGrey WoodedIrrigatedPeace

eMapGIS 2007(c) 06/22/2007Statistics and Data Development UnitAGRICULTURE AND FOOD

2005 Crop Participants

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mailto:[email protected]

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2005 Crop Enterprise AnalysisCrop: Spring Wheat - AllSoil Zone: Irrigated - StubbleUnit: Bushel - - - - - $/Acre - - - - - - - - - $/Bushel - - - -

Average Top 1/3 Average Top 1/3

(A) 1. Crop Sales 302.94 - - 3.67 - -2. Crop Insurance Receipts 0.00 - - 0.00 - -3. Other Receipts 2.31 - - 0.03 - -

Gross Receipts 305.25 0.00 3.70 0.00

(B) Cost Items1. Seed 16.03 - - 0.19 - -2. Fertilizer 53.70 - - 0.65 - -3. Chemical 32.46 - - 0.39 - -4. Hail/Crop Insurance Premium 12.63 - - 0.15 - -5. Trucking and Marketing 4.78 - - 0.06 - -6. Fuel 30.81 - - 0.37 - -7. Irrigation Fuel and Electricity 7.85 - - 0.10 - -8. Repairs - Machinery 32.79 - - 0.40 - -9. Repairs - Buildings 1.58 - - 0.02 - -10. Utilities and Miscellaneous 15.71 - - 0.19 - -11. Custom Work 1.90 - - 0.02 - -12. Operating Interest Paid 4.89 - - 0.06 - -13. Paid Labour 22.71 - - 0.28 - -14. Unpaid Labour 13.02 - - 0.16 - -

Variable Costs 250.87 0.00 3.04 0.00

(C) 1. Cash/ Share Land Rent 5.47 - - 0.07 - -2. Taxes, Water Rates, License & Ins. 29.99 - - 0.36 - -3. Equipment and Building: a) Depreciation 63.78 - - 0.77 - -

b) Lease Payments 0.00 - - 0.00 - -4. Paid Capital Interest 19.79 - - 0.24 - -

Capital Costs 119.03 0.00 1.44 0.00

(D) Cash Costs (B+C-B14-C3a) 293.10 - - 3.55 - -(E) Total Production Costs (B+C) 369.90 - - 4.48 - -

Gross Margin (A-D) 12.15 - - 0.15 - -Return to Unpaid Labour (A-E+B14) (51.63) - - (0.63) - -Return to Investment (A-E+C4) (44.86) - - (0.54) - -Return to Equity (A-E) (64.65) - - (0.78) - -

InvestmentBuildings 149.35 - -Machinery 422.17 - -Irrigation Machinery 213.50 - -

Total (incl. Land) 2553.77 - -

ManagementAverage Yield (Bushel/acre) 82.53 - -Expected Market Price ($/Bushel) 3.67 - -

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2005 Crop Enterprise AnalysisCrop: Spring Wheat - OwnSoil Zone: Irrigated - StubbleUnit: Bushel - - - - - $/Acre - - - - - - - - - $/Bushel - - - -



Gross Receipts 317.00 0.00 3.74 0.00


Variable Costs 245.24 0.00 2.89 0.00



Capital Costs 115.87 0.00 1.37 0.00






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2005 Crop Enterprise AnalysisCrop: Soft Wheat - AllSoil Zone: Irrigated - StubbleUnit: Bushel - - - - - $/Acre - - - - - - - - - $/Bushel - - - -



Gross Receipts 450.80 0.00 4.40 0.00


Variable Costs 200.42 0.00 1.96 0.00



Capital Costs 138.09 0.00 1.35 0.00


Gross Margin (A-D) 177.46 - - 1.73 - -Return to Unpaid Labour (A-E+B14) 128.38 - - 1.25 - -Return to Investment (A-E+C4) 118.73 - - 1.16 - -Return to Equity (A-E) 112.29 - - 1.10 - -




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2005 Crop Enterprise AnalysisCrop: Soft Wheat - RentSoil Zone: Irrigated - StubbleUnit: Bushel - - - - - $/Acre - - - - - - - - - $/Bushel - - - -



Gross Receipts 425.41 0.00 4.33 0.00


Variable Costs 199.68 0.00 2.03 0.00



Capital Costs 137.67 0.00 1.40 0.00






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2005 Crop Enterprise AnalysisCrop: Durum - AllSoil Zone: Irrigated - StubbleUnit: Bushel - - - - - $/Acre - - - - - - - - - $/Bushel - - - -



Gross Receipts 300.00 0.00 3.00 0.00


Variable Costs 273.09 0.00 2.73 0.00



Capital Costs 120.04 0.00 1.20 0.00


Gross Margin (A-D) (47.66) - - (0.48) - -Return to Unpaid Labour (A-E+B14) (74.42) - - (0.74) - -Return to Investment (A-E+C4) (71.38) - - (0.71) - -Return to Equity (A-E) (93.13) - - (0.93) - -




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2005 Crop Enterprise AnalysisCrop: Feed Barley - AllSoil Zone: Irrigated - StubbleUnit: Bushel - - - - - $/Acre - - - - - - - - - $/Bushel - - - -



Gross Receipts 264.60 0.00 2.49 0.00


Variable Costs 195.23 0.00 1.84 0.00



Capital Costs 128.54 0.00 1.21 0.00






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2005 Crop Enterprise AnalysisCrop: Feed Barley - AllSoil Zone: Irrigated - FallowUnit: Bushel - - - - - $/Acre - - - - - - - - - $/Bushel - - - -



Gross Receipts 125.08 0.00 2.66 0.00


Variable Costs 93.75 0.00 1.99 0.00



Capital Costs 26.83 0.00 0.57 0.00






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2005 Crop Enterprise AnalysisCrop: Feed Barley - OwnSoil Zone: Irrigated - FallowUnit: Bushel - - - - - $/Acre - - - - - - - - - $/Bushel - - - -



Gross Receipts 125.08 0.00 2.66 0.00


Variable Costs 93.75 0.00 1.99 0.00



Capital Costs 26.83 0.00 0.57 0.00






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2005 Crop Enterprise AnalysisCrop: Feed Barley - RentSoil Zone: Irrigated - StubbleUnit: Bushel - - - - - $/Acre - - - - - - - - - $/Bushel - - - -



Gross Receipts 264.41 0.00 2.63 0.00


Variable Costs 191.70 0.00 1.90 0.00



Capital Costs 152.97 0.00 1.52 0.00






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2005 Crop Enterprise AnalysisCrop: Dry Beans - AllSoil Zone: Irrigated - StubbleUnit: Pound - - - - - $/Acre - - - - - - - - - $/Pound - - - -



Gross Receipts 318.83 0.00 0.23 0.00


Variable Costs 370.07 0.00 0.26 0.00



Capital Costs 142.59 0.00 0.10 0.00





ManagementAverage Yield (Pound/acre) 1399.08 - -Expected Market Price ($/Pound) 0.17 - -

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2005 Crop Enterprise AnalysisCrop: Dry Beans - OwnSoil Zone: Irrigated - StubbleUnit: Pound - - - - - $/Acre - - - - - - - - - $/Pound - - - -



Gross Receipts 316.91 0.00 0.18 0.00


Variable Costs 384.69 0.00 0.22 0.00



Capital Costs 125.46 0.00 0.07 0.00






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2005 Crop Enterprise AnalysisCrop: Dry Beans - RentSoil Zone: Irrigated - StubbleUnit: Pound - - - - - $/Acre - - - - - - - - - $/Pound - - - -



Gross Receipts 321.42 0.00 0.34 0.00


Variable Costs 350.39 0.00 0.37 0.00



Capital Costs 165.66 0.00 0.17 0.00






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2005 Crop Enterprise AnalysisCrop: Sugar Beets - AllSoil Zone: Irrigated - StubbleUnit: Tonne - - - - - $/Acre - - - - - - - - - $/Tonne - - - -


(A) 1. Crop Sales 897.02 942.20 45.02 45.022. Crop Insurance Receipts 23.64 2.07 1.19 0.103. Other Receipts 4.57 6.51 0.23 0.31

Gross Receipts 925.23 950.79 46.44 45.43

(B) Cost Items1. Seed 47.05 47.05 2.36 2.252. Fertilizer 47.83 36.32 2.40 1.743. Chemical 90.27 90.19 4.53 4.314. Hail/Crop Insurance Premium 21.31 19.06 1.07 0.915. Trucking and Marketing 94.74 84.33 4.76 4.036. Fuel 55.03 53.68 2.76 2.577. Irrigation Fuel and Electricity 16.87 10.06 0.85 0.488. Repairs - Machinery 53.04 44.19 2.66 2.119. Repairs - Buildings 5.28 7.80 0.27 0.3710. Utilities and Miscellaneous 36.21 29.49 1.82 1.4111. Custom Work 33.19 32.99 1.67 1.5812. Operating Interest Paid 11.27 3.63 0.57 0.1713. Paid Labour 55.51 66.54 2.79 3.1814. Unpaid Labour 41.18 36.80 2.07 1.76

Variable Costs 608.79 562.14 30.55 26.86

(C) 1. Cash/ Share Land Rent 84.44 43.59 4.24 2.082. Taxes, Water Rates, License & Ins. 21.22 27.08 1.07 1.293. Equipment and Building: a) Depreciation 96.43 116.46 4.84 5.56

b) Lease Payments 13.19 0.00 0.66 0.004. Paid Capital Interest 54.32 46.34 2.73 11.16

Capital Costs 269.60 233.47 13.53 20.10

(D) Cash Costs (B+C-B14-C3a) 740.79 642.35 37.18 39.63(E) Total Production Costs (B+C) 878.39 795.61 44.09 46.96

Gross Margin (A-D) 184.44 308.44 9.26 5.80Return to Unpaid Labour (A-E+B14) 88.01 191.98 4.42 0.23Return to Investment (A-E+C4) 101.15 201.52 5.08 9.63Return to Equity (A-E) 46.83 155.18 2.35 (1.53)

InvestmentBuildings 104.75 138.45Machinery 748.00 736.16Irrigation Machinery 286.50 467.39

Total (incl. Land) 2178.24 2793.95

ManagementAverage Yield (Tonne/acre) 19.92 20.93Expected Market Price ($/Tonne) 45.02 45.02

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2005 Crop Enterprise AnalysisCrop: Sugar Beets - OwnSoil Zone: Irrigated - StubbleUnit: Tonne - - - - - $/Acre - - - - - - - - - $/Tonne - - - -



Gross Receipts 995.11 0.00 46.87 0.00


Variable Costs 614.04 0.00 28.92 0.00



Capital Costs 291.54 0.00 13.73 0.00





ManagementAverage Yield (Tonne/acre) 21.23 - -Expected Market Price ($/Tonne) 45.02 - -

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2005 Crop Enterprise AnalysisCrop: Sugar Beets - RentSoil Zone: Irrigated - StubbleUnit: Tonne - - - - - $/Acre - - - - - - - - - $/Tonne - - - -


(A) 1. Crop Sales 857.13 897.40 45.02 45.022. Crop Insurance Receipts 18.18 1.36 0.95 0.073. Other Receipts 2.45 0.40 0.13 0.02

Gross Receipts 877.76 899.16 46.10 45.11

(B) Cost Items1. Seed 47.05 47.05 2.47 2.362. Fertilizer 46.02 32.99 2.42 1.653. Chemical 91.69 86.93 4.82 4.364. Hail/Crop Insurance Premium 20.57 16.94 1.08 0.855. Trucking and Marketing 99.79 106.41 5.24 5.346. Fuel 53.99 54.55 2.84 2.747. Irrigation Fuel and Electricity 19.36 19.13 1.02 0.968. Repairs - Machinery 52.31 46.44 2.75 2.339. Repairs - Buildings 5.13 6.12 0.27 0.3110. Utilities and Miscellaneous 35.07 30.22 1.84 1.5211. Custom Work 31.89 25.81 1.68 1.2912. Operating Interest Paid 11.69 11.06 0.61 0.5513. Paid Labour 52.60 55.90 2.76 2.8014. Unpaid Labour 38.06 32.90 2.00 1.65

Variable Costs 605.23 572.44 31.79 28.72

(C) 1. Cash/ Share Land Rent 141.80 101.77 7.45 5.112. Taxes, Water Rates, License & Ins. 9.40 8.45 0.49 0.423. Equipment and Building: a) Depreciation 61.84 48.52 3.25 2.43

b) Lease Payments 22.14 35.25 1.16 1.774. Paid Capital Interest 19.52 16.13 1.03 10.54

Capital Costs 254.70 210.12 13.38 20.27

(D) Cash Costs (B+C-B14-C3a) 760.03 701.14 39.92 44.91(E) Total Production Costs (B+C) 859.93 782.56 45.17 48.99

Gross Margin (A-D) 117.73 198.01 6.18 0.20Return to Unpaid Labour (A-E+B14) 55.90 149.50 2.94 (2.23)Return to Investment (A-E+C4) 37.35 132.73 1.96 6.66Return to Equity (A-E) 17.83 116.60 0.94 (3.88)

InvestmentBuildings 105.80 121.48Machinery 676.92 561.35Irrigation Machinery 0.00 0.00

Total (incl. Land) 782.72 682.83

ManagementAverage Yield (Tonne/acre) 19.04 19.93Expected Market Price ($/Tonne) 45.02 45.02

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2005 Crop Enterprise AnalysisCrop: Alfalfa Hay - AllSoil Zone: Irrigated - StubbleUnit: Tonne - - - - - $/Acre - - - - - - - - - $/Tonne - - - -



Gross Receipts 254.70 0.00 60.64 0.00


Variable Costs 206.62 0.00 49.19 0.00



Capital Costs 165.26 0.00 39.35 0.00






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2005 Crop Enterprise AnalysisCrop: Mixed Hay - AllSoil Zone: IrrigatedUnit: Tonne - - - - - $/Acre - - - - - - - - - $/Tonne - - - -



Gross Receipts 90.00 0.00 55.12 0.00


Variable Costs 31.84 0.00 19.50 0.00



Capital Costs 23.33 0.00 14.29 0.00






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2005 Crop Enterprise AnalysisCrop: Mixed Hay - OwnSoil Zone: IrrigatedUnit: Tonne - - - - - $/Acre - - - - - - - - - $/Tonne - - - -



Gross Receipts 90.00 0.00 55.12 0.00


Variable Costs 31.84 0.00 19.50 0.00



Capital Costs 23.33 0.00 14.29 0.00






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2005 Crop Enterprise AnalysisCrop: Greenfeed - AllSoil Zone: IrrigatedUnit: Tonne - - - - - $/Acre - - - - - - - - - $/Tonne - - - -



Gross Receipts 136.76 0.00 59.05 0.00


Variable Costs 61.07 0.00 26.37 0.00



Capital Costs 25.41 0.00 10.97 0.00






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2005 Crop Enterprise AnalysisCrop: Greenfeed - OwnSoil Zone: IrrigatedUnit: Tonne - - - - - $/Acre - - - - - - - - - $/Tonne - - - -



Gross Receipts 136.76 0.00 59.05 0.00


Variable Costs 61.07 0.00 26.37 0.00



Capital Costs 25.41 0.00 10.97 0.00






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2005 Crop Enterprise AnalysisCrop: Haylage - AllSoil Zone: Irrigated - StubbleUnit: Tonne - - - - - $/Acre - - - - - - - - - $/Tonne - - - -



Gross Receipts 176.37 0.00 21.08 0.00


Variable Costs 126.54 0.00 15.12 0.00



Capital Costs 125.07 0.00 14.95 0.00






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2005 Crop Enterprise AnalysisCrop: Haylage - RentSoil Zone: Irrigated - StubbleUnit: Tonne - - - - - $/Acre - - - - - - - - - $/Tonne - - - -



Gross Receipts 156.73 0.00 21.12 0.00


Variable Costs 133.89 0.00 18.04 0.00



Capital Costs 96.68 0.00 13.03 0.00






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FREQUENCY AND CUMULATIVE FREQUENCY DISTRIBUTION Distribution charts organize data into pictures, which is a format that the human processing system (the brain) can better understand. Frequency distributions relate the percentage (or number) of observations falling in a specific range. Cumulative frequency distribution displays the same information as frequency distribution, but it is expressed as a “rate of change” (i.e. the steeper the slope the greater the change). Cumulative frequency also illustrates how many observations lie above or below certain values, rather than only recording the number of items within the intervals. The frequency information in this benchmark report provides an indication of how crops performed, on a field-by-field basis, within the AgriProfit$ pool. Looking forward, this information can be used to evaluate how and why this crop might be included in future cropping plans based on these types of frequencies. In the following discussions, the feed barley frequency distribution charts are used as an example of how to interpret the frequency information. The first pair of charts provides the distribution of the feed barley yield range in the irrigated soil zones. From these charts a lot can be interpreted about yield performance: • The low is less than 50 bushels per acre and the high is greater than 120 bushels per acre, and • 90% of the feed barley fields in the irrigated soil zones yield between 40 and 95 bushels per

acre This detailed information provides a better understanding of yield variability. The average yield on stubble is 106 bushels per acre provided on the feed barley crop analysis. While the average (or mean) is important, consideration of both the mean and variability ultimately sets the stage for good decision-making and management practices. The second set of graphs focuses on the distribution of cost totals. Understanding these provides a basis for cost control and managing for yield per dollar invested. It is important to look at cash costs for individual field analysis (as an indication of cash flow pressure points). Cash costs include all cash expenses accrued to the production of that crop. Total production costs are important when assessing all crops together for an overall enterprise analysis, relaying the longer term cost efficiency of each crop and the combined crop mix. Total production costs include the non-cash elements of unpaid labour and depreciation, in addition to cash costs. Looking at the charts, if the price of feed barley was $3 per bushel, then 90% of the fields are covering their cash costs and 50% of the fields are covering their total production costs. In the long run, the best mix of crops would cover total production costs and give a positive net return per acre. The third set of graphs highlights contribution and gross margins. Contribution margin is the return over variable costs, which are a combination of variable cash and non-cash (unpaid labour) costs. It is the best single indicator of profitability at the individual field level and it is used to compare and select crops to grow regardless of the fields being owned or rented. The first objective in setting up a crop plan is to select crops with a positive contribution margin; this will identify the most profitable crop mix over the long term. Gross margin is the return over total cash costs, which include fixed costs (land rent, taxes, water rights, licenses and capital interest). It is valuable in predicting each crop’s ability to generate cash flow for the year. From

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a cash flow point of view, the gross margin provides an indication of the crop’s ability to contribute to principal payments and operator withdrawals. From a profitability perspective, gross margin is what is leftover to cover the non-cash costs and provide a return on investment. The final set of graphs shows the distribution of returns to equity, or profit per unit of production. This example shows that 40% of the fields had a loss and 60% of the fields at least broke even. Return to equity can be used to compare the profitability of one crop versus another or one farm enterprise to another in the same industry. Understanding these concepts in AgriProfit$ and evaluating historical performance on a per bushel basis can be very useful for other Alberta Agriculture and Food (AF) applications. For example, CropChoice$ is a tool that combines traditional crop planning with the ability to measure the riskiness of your plan. Producers can then creatively evaluate potential risk management strategies.

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http://www1.agric.gov.ab.ca/$department/deptdocs.nsf/all/bmi8001

Irrigated Soil Zones - Feed Barley (on Stubble): 2005

Frequency Distribution: Irrigated Soil Zones - Feed Barley (on Stubble) Yields

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Irrigated Soil Zones - Dry Beans (on Stubble): 2005

Frequency Distribution: Irrigated Soil Zones - Dry Beans (on Stubble) Yields

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Irrigated Soil Zones - Sugar Beets (on Stubble): 2005

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DEFINITIONS AND ALLOCATIONS I INCOME A Imputed Value of Production – total of estimated

yields/acre X estimated final prices B Crop Insurance Receipts – added regardless of

when payment is received C Miscellaneous Receipts – such as patronage

dividends or input rebates D Government Program Receipts – allocated to all

cropped acres equally E Straw/Aftermath Grazing Revenue – value of

straw + imputed value of grazing II EXPENSES A Crop Specific Inputs – allocated by producer to

each crop as documented on the survey form 1. Seed 2. Fertilizer 3. Chemical 4. Hail and Crop Insurance 5. Custom Work and Specialized Labour 6. Land Rent – cash rent or crop share (converted to a

cash basis) B Allocated Crop Inputs – allocation ratios based on

research from AAFRD 1. Irrigation to Dryland Ratio – allocated to crops at

a 3:1 ratio 2. Trucking and Marketing – allocated to specific

cropping acres by producer 3. Fuel – Summerfallow – allocation of 0.3:1

compared to crop acres; Sugar beets – allocation of 2.96:1 compared to other irrigated crop acres

4. Irrigation Fuel – allocation based on total pumping hours for each crop

5. Machinery Repairs – allocated equally to all acres except summerfallow (0.3:1) and special crops (as specified by producer)

6. Building Repairs – allocated to all acres equally except for special crops buildings

7. Operating Interest – interest paid on operating loans allocated equally

8. Paid Labour – based on allocations between crops as specified by producer

9. Unpaid and Operator Labour – operator - $10/hour, other unpaid labour - $7.50/hour

10. Land Taxes – allocated equally to all owned cropped acres

11. Water Rates – allocated equally to all owned irrigated acres

12. Water Rates – allocated equally to all owned irrigated acres

13. Equipment Depreciation – imputed at 8.5% for power equipment, 11% for non-power, based on current market value

14. Insurance and Licenses – allocated to all cropped acres equally

15. Building Depreciation – imputed at 5% on the current market value

16. Paid Capital Interest – allocated to all owned cropped acres equally except summerfallow (0.25:1)

III CAPITAL INVESTMENT A Land – producer estimate of bare land value for

both irrigated and dryland owned acreage B Buildings – allocated equally to all acreage except

special crops buildings (allocated to the crop) C Equipment

1. General Use – allocated to all acres equally, except summerfallow (0.3:1)

2. Crop Specific – allocated by producer to each crop based on percentage of use

3. Irrigation – allocated according to pumping hours as specified by producer

IV SUMMARY CALCULATION

A Gross Return = imputed value of production + crop insurance receipts + miscellaneous receipts + government program payments + straw/grazing revenue

B Variable Costs = seed + fertilizer + chemicals + crop insurance + trucking and marketing + fuel + machinery and building repairs + utilities + miscellaneous overhead + custom work + operating interest + paid and unpaid labour

C Total Capital Costs = land rent + land taxes + water rates + insurance + depreciation + paid capital interest

D Cash Costs = variable costs + capital costs – unpaid labour – depreciation

E Total Production Costs = variable costs + total capital costs

F Gross Margin (returns left to cover total capital costs and operator equity) = gross return – total cash costs

G Return to Unpaid Labour (funds remaining after all expenses have been paid except unpaid labour) = gross return – total production costs + unpaid labour

H Return to Investment (shows the operation’s ability to earn a return on its total assets) = gross return – total production costs + paid capital interest

I Return to Equity (amount remaining from operations used to provide a return to individual or shareholder equity) = gross return – total production costs

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Cover IrrigatedTABLE OF CONTENTS IrrigatedOVERVIEW Irrigated2005 Irrigated Soil Zones

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Documents

Economics and Competitiveness · 2005 Sugar Beets on Irrigated Soil Zones 0.00 5.00 10.00 15.00 20.00 25.00 30.00 35.00 40.00 45.00 50.00 Average Top 1/3 Total Cost ($/Tonne) Other